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Business Sense

10 Risks Every Wholesaler-Distributor Needs Coverage for

As a wholesaler-distributor, you face unique business risks. And that makes having the right insurance all the more important. 

Most standard insurance policies include coverage for your building, your business personal property, the personal property of others in your care and most liability risks.

Yet there are other coverages worth considering that aren’t automatically included in your main policy. These “extras” are typically offered as endorsements—documents attached to an insurance policy that expand or restrict coverage. (In this example, they all expand coverage.)

Here are the 10 risks that wholesaler-distributors should consider covering by endorsement:

  1. The possibility of your vendor being sued because a customer is injured by a product they purchased through you.
  2. Brand name merchandise in your warehouse is damaged by a covered peril and cannot be sold.
  3. Lost income when a key supplier suffers a covered incident (like a major fire) and is unable to provide you merchandise to fill your orders.
  4. Damage to equipment caused by a utility failure that occurs away from your premises.
  5. The possibility of a customer buying goods under false pretenses that leaves you unable to recover the cost of the goods you sold.
  6. Equipment breakdown such as refrigerators, freezers, conveyors, telephones, computers or heating /cooling equipment.
  7. Penalties you incur after a covered loss prevents you from fulfilling the terms of a contract.
  8. A sewer or drain backup, ruining your inventory.
  9. The possibility of someone other than an employee stealing merchandise while it’s being transported.
  10. Loss or damage to employees’ tools both on and off your premises

Erie Insurance offers an affordable, bundled endorsement to help cover these risks. (Some are even included in your business policy—with the endorsement, you get higher limits for those coverages.)1

ERIE offers specialized coverage for wholesaler-distributors through the The ERIE Custom Collection® Wholesaler-Distributors Program. This specialized suite of products and services offers wholesaler-distributors like you better protection and peace of mind. Learn more about ERIE’s high-quality, affordable protection options by contacting your local ERIE agent.

1Certain terms and limitations may apply. See individual policies for specific coverage details. Refer to ERIE’s disclaimer.


As a wholesaler-distributor, it’s worth considering additional protection for your unique industry risks. /blog/wholesaler-risks Erie Insurance